Obviously, the price of bitcoin has fluctuated greatly. Right now we are dealing with 6 types of people which I will explain how this is causing the volatility of Bitcoin. However, I will also explain why this isn't going to affect the Bitcoin user.
- the believer: the person that has fully accepted blockchain technology, probably working on something related to it right now, and has been owning Bitcoin and using it.
- the hesitant believer: the person that has believed in the concept of Bitcoin because of the understanding of blockchain technology. However this person doesn't believe the possibility that Bitcoin would be used until now.
- the stocker: the person may have very little concept on blockchain and cryptocurrency. However, this person sees that there is money to be made and only wants to buy to sell for profit of USD dollars.
- the curious: this person doesn't understand too much but it starting to become curious on the idea of cryptocurrency. It will eventually lead them down to the rabbit hole of blockchain.
- the non-believer: This person is self explanatory
- the crusher: this person doesn't want bitcoin or blockchain to happen because it means they will lose power over whatever blockchain can eventually take over.
So how do these people effect the price of bitcoin? Here's what I believe. The price is going to steadily go up because of the believers, the hesitant believer, and the curious. The price spikes and downfalls are caused from the stockers who are purchasing Bitcoins and selling them right away when they have gained x amount of dollars gain. The stockers will always be there...for now which will effect the hesitant believer and the curious. The stockers will make the crushers nervous because they want non believers to never become the curious. The stockers are going to make bitcoin seem more of a commodity so the curious are really confused as the stocker is helping the argument that bitcoin is a fantasy.
But believers, hesitant believers, and the curious can do something to help make bitcoin stronger. USE IT. When the stockers create a huge spike ( yes you will know because it will go so rapidly fast) if you currently have Bitcoin right now....Buy something using bitcoin ( especially with the price spikes). But when the prices stabilizes it represents the worth of the many that do believe in it. Right now overstock, subway, Zynga, new egg are a few companies that are accepting Bitcoin. If every single bitcoin holder purchases one subway you will create more friction and the cause to use cryptocurrency. It will make curious people pay attention to it harder. So use it!!!! At this point that $5 worth of Subway sandwich you purchase will pave the way for the cause of cryptocurrency. Bitcoin users can all by martyrs!
In any case this applies to whatever cryptocurrency you believe in let it be either ether, litecoin, ripple, etc.